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Apple’s famous “Think Different” advertising campaign pays tribute to the misfits and rebels who are changing the world. Entrepreneurs belong to this same class of people: those who change the status quo. Their names are legendary and their successes are celebrated. Quite naturally, ambitious people turn to entrepreneurship.
One of the main problems with blindly following the media narrative is the existence of a strong survival bias. Only public successes are celebrated, while a majority of start-ups will fail. A report by the International Finance Corporation (IFC) estimates that around 20% of small and medium enterprises in India go bankrupt within their first year of operation. 60% of them fail in their first three years.
Given these statistics, should you even consider entrepreneurship as a career option? But first, let’s bust some myths:
Entrepreneurs are born, they are not created: This myth suggests that entrepreneurs have a natural talent or inclination to start and run a business that cannot be learned or developed over time. However, research shows that successful entrepreneurs often acquire skills through education, training and experience.
Entrepreneurs take big risks: Although starting a business involves some level of risk taking, successful entrepreneurs are often strategic and calculated in their approach to risk. They do their research, test their ideas, and take calculated risks that are backed by data and market insights. In fact, successful entrepreneurs think a lot about risk and work to mitigate potential negative consequences.
Entrepreneurs are all young and tech-savvy: While it’s true that many successful entrepreneurs are young and tech-savvy, there are also many successful entrepreneurs who are older and come from diverse backgrounds and industries. The key to success in entrepreneurship is not age or mastery of technology, but rather a combination of passion, perseverance and a willingness to learn and adapt.
Entrepreneurs are in it for the money: Even though making money is often a key motivator for entrepreneurs, it’s not the only reason they start a business. Many entrepreneurs are driven by a desire to solve a problem, make a difference in their community, or create a product or service they are passionate about. As Steve Jobs said, “I’m convinced that the only thing that kept me going was that I loved what I was doing. You have to find what you like. If money is the only motivating factor, a potential entrepreneur will drop the hurdle. In order to stay in the game for the long term, you must first find your WHY.
Success is above all having a good idea: While it is certainly important to have a good idea, it is far from the only factor that contributes to entrepreneurial success. In fact, many ideas are not good business. You need to examine your idea dispassionately through three lenses:
Desirability : Do people really want what you offer? Remember they don’t want your product or service – they just want a job done.
Feasibility: Do you have the means to provide the desired product or service or do you need to partner with other entities?
Viability: How will the entity earn money to survive and thrive?
Once you’ve mapped them out, you need to uncover and validate any implicit assumptions. These operations can be carried out very quickly and inexpensively. Finally, execution, perseverance and adaptability are all critical factors that can determine the success or failure of a business.
It takes a lot of money to start a business: Money is necessary, but many successful entrepreneurs started out with very little money. The key is to focus on creating a simple and effective business model and finding creative ways to fund your business. There are many stories of overcapitalized companies going bankrupt, while lean, starving companies thrive in the same environment.
Contractors work 24/7: While starting and running a business can be time consuming and require long hours, successful entrepreneurs also prioritize work-life balance and know when to take a break. Burnout is a real risk for entrepreneurs, and taking care of your physical and mental health is essential for long-term success.
Should you quit your job and work on this idea that’s been in your head? You should test the ground first. Start your idea first as a side project, while still employed. This gives you the opportunity to test the idea and see if it has potential.
Make sure your idea, industry, or potential clients don’t overlap with your main job. Once you have completed your main function, you should work by your side.
Attend networking events where other entrepreneurs and investors come together. This gives you the opportunity to meet people in the industry and get feedback.
Join an acceleration program. Acceleration programs provide entrepreneurs with resources and support to help them launch and grow their business. Find accelerator programs in your area and apply to join.
Work in a startup. It gives you an idea of all the dimensions involved in running and scaling a business.
Become an intrapreneur. Many large organizations recognize the value of entrepreneurial qualities: initiative, perseverance, innovation, etc. To harness these skills, they create internal innovation groups. Try browsing in one of these groups in order to
learn and apply design thinking skills
influence across the organization to achieve goals
Whatever path you choose, hold on to your deep passion. After all, people who are crazy enough to think they can change the world do!
(The author is a global social entrepreneur)
